Tea Companies Attempting to Make Beverage Popular Among Youth

Mukherjee's excitement is what tea companies in India need to create to tap the youth, who have gradually migrated to coffee and are ready to pay between Rs 100 and Rs 150 for a cappuccino or a latte."Wow!" exclaimed 20-year-old Sayani Mukherjee when she learnt from her friend that Jadavpur University would host another tea carnival next month on campus. "Last year I had tasted tea mocktails at the carnival and I liked them a lot. Now I am a regular with tea mocktails and other variants of speciality teas and I really like them."

Mukherjee's excitement is what tea companies in India need to create to tap the youth, who have gradually migrated to coffee and are ready to pay between Rs 100 and Rs 150 for a cappuccino or a latte.

"It is true that we started late, but we are trying to create a lot of noise surrounding tea," said Azam Monem, director of tea company McLeod Russel India. "Last year, we had participated in college festivals in Delhi, Chandigarh and Kolkata. Enthused by the response and the queries we received, this year we are launching Version 2 of presenting tea in a different format to the young crowd in the age group of 18-22 years.We will be organizing tea carnivals at Amity University and Sri Venkateswara College in Delhi and NCR and also in Jadavpur University in Kolkata."

Tea companies are trying to make tea a popular beverage for the youth by using FM radio. "We will also use social platforms like Facebook, Twitter, WhatsApp to popularize functional teas among the youths. We have also initiated talks with food and beverage lounges where tea can be served in some new format," Monem said.

It's not the coffee threat alone that's worrying the tea industry. Per capita tea consumption in India is about 730 grams, which is far below countries including Turkey, Ireland and even Pakistan, according to the Indian Tea Association, the oldest organization of tea producers in the country, underscoring the potential for growth.

India's tea consumption expanded 2.4% in 2009 and 6.6% in 2013 to reach 1 million tonnes, according to a report by the Food and Agriculture Organization of the United Nations in 2015. Although consumption of tea in India is increasing, companies aren't gaining much because prices are stagnant and unless the beverage is offered in new and exciting formats, higher rates can't be charged.

"This is absolutely true. Keeping that in mind, we have launched mint, lemon, jasmine and chamomile teas," said Ramesh Chand Agarwal, managing director of Mohani Tea Leaves, a packet tea company in north India."Working women and college-goers are picking up these products. Traditional teas will remain the base of the pyramid, but if we have to catch the higher end, we need to offer something extra."

Agarwal said the company is setting up five tea lounges in Noida, Kanpur, Agra, Amritsar and Chandigarh. Later, one will be added in New Delhi. He pointed out that Indian consumers in metros are gradually shifting from loose tea to branded tea - the size of which is pegged at Rs 10,000 crore.

"This is no doubt a good sign. But we need more innovation in tea if tea has to retain its number one position," said Nikhil Joshi, managing director of Mumbai-based Sapat Tea.

According to Joshi, some unique chai recipes from various parts of the country that can be introduced on a mass scale in the Indian market. A chaiwala at the Golden Temple in Amritsar adds fennel to tea, giving it a unique taste that people queue up for. In Navsari, Gujarat, one seller adds lemongrass to the tea, which is liked by Parsis. "The key word is innovation. If the government allows us to import different kind of teas from places like China or Sri Lanka, then we will be able to offer different kind of teas to Indian consumers," said Joshi.

Ahmedabad-based Wagh Bakri Group has come up with seven tea lounges at prominent locations in New Delhi, Mumbai and Ahmedabad. "We also have set up kiosks in airports and other places. We also plan to go overseas with our tea lounges," said Parag Desai, executive director at Wagh Bakri Group.

The Goodricke Group of Kolkata is also setting up tea lounges. It recently set up one at its tea estate in Kurseong - Margaret's Hope. To give a fillip to tea drinking, Darjeeling Heritage Railways - commonly known as the 'Toy Train' - has scheduled a halt at the estate so that overseas and domestic tourists can sip the exquisite Darjeeling tea.